Reserve Bank of India (RBI) governor Sanjay Malhotra on Friday urged Clearing Corporation of India (CCIL) to explore an infrastructure that enables trading and settlement of the rupee against a wider basket of currencies, reflecting India’s growing trade and investment linkages across Asia, Africa, and Europe.
He highlighted the central bank’s evolving vision for the internationalisation of the rupee, which moves decisively beyond the traditional USD-INR corridor. Malhotra was speaking at an event to mark the CCIL’s 25th anniversary.
Vision for multi-currency trading
“The broader objective of internationalisation,” he said, “requires us to move beyond the dollar and build capabilities for multi-currency engagement”. This includes readiness for new interest rate derivatives and products that meet and anticipate the market demand.
He said expanding the reach of platforms like Forex Retail and RBI Retail Direct to corporates, non-residents, and global investors could unlock deeper market liquidity and operational efficiencies. This retail-led approach, he noted, is not just about inclusion; it’s about embedding the rupee into the fabric of global financial flows.
Building a robust financial infrastructure
The RBI governor has been talking about the internationalisation of the rupee for some time now. The issue has been highlighted in the annual report of the RBI. India has signed memoranda of understanding towards local currency settlement with the Maldives and Mauritius in November 2024 and March 2025, respectively.
The RBI governor commended CCIL’s foray into the IFSC, calling for continuous expansion and refinement of services offered there. He highlighted India’s unique achievement, being the only major country where government securities are traded anonymously on electronic platforms with real-time dissemination of trade data. This, coupled with a robust trade repository established ahead of G20 mandates, positions India as a global benchmark in transparency and infrastructure.